FinMin To Take Up Jet Airways India Ltd And Etihad Deal For Approval On June 11-Business Standard

Thursday, 30 May 2013 05:33am EDT

Business Standard reported that the Finance Ministry will take up Jet Airways India Ltd's proposal to induct foreign capital by selling 24% stake to Abu Dhabi based Etihad for about INR20.58 billion on June 11. The proposal is listed in the agenda of the next meeting of the Foreign Investment Promotion Board (FIPB), which clears FDI proposals in certain sensitive sectors, said sources. Once the proposal is approved by the FIPB, it will go to the Cabinet Committee on Economic Affairs (CCEA) for final clearance as the deal size exceeds INR1.2 billion. Meanwhile, market regulator Sebi and competition watchdog CCI have sought clarity from the domestic carrier on the transaction, to ensure that Etihad's ownership powers in Jet remains in line with its 24% stake in the Company's equity capital. Sources said the regulator may suggest certain changes, or at least an additional disclaimer by the two parties involved in the deal to ensure compliance with the FDI norms on ownership.